Kids-focused e-commerce platform FirstCry is realigning its product strategy to improve margins, offer better prices, and attract more customers across both online and offline channels, Founder and CEO Supam Maheshwari said during an earnings call for the quarter ended September 2025 (Q2 FY26).
Instead of expanding its product portfolio, the company plans to increase volumes and deliver better unit economics without any material impact on gross margins. This, Maheshwari said, will boost footfalls in the offline business and drive conversion and online volumes. The product realignment is expected to be completed by H1 FY27.
FirstCry, which counts Premji Invest and SoftBank among its investors, offers a wide range of products across apparel, footwear, baby care, nursery items, diapers, toys, maternity wear, maternity care, and parenting books.
India Multi-Channel GMV Rises on New GST Regime
The company generates revenue primarily from three segments, India multi-channel, international, and its house-of-brands subsidiary GlobalBees.
FirstCry’s India multi-channel business saw an 8% year-on-year (YoY) jump in revenue to Rs 1,381 crore in Q2 FY26, while the gross merchandise value (GMV) for this segment climbed 12% YoY to Rs 2,363 crore. Growth in the second half of the quarter was moderated as customers deferred purchases following the announcement of the new GST regime.
“Despite deferring of consumer demand due to implementation of new generation GST reforms, we witnessed sequential improvement in YoY growth rate for GMV across both online & offline channels,” company said in the investor presentation.
Almost a third of FirstCry’s product portfolio has transitioned to the 5% GST slab following the tax changes, with the shift expected to spur demand for all retailers.
Annual unique transacting customers in the India multi-channel business grew 11% YoY to 10.5 million in Q2 FY26, while the order volume rose 8% YoY to 10.2 million.
Notably, the company said in its FY25 investor presentation that 55% of its India multi-channel GMV came from home brands such as Babyoye, Pine Kids, Babyhug, and Cutewalk.
Focus on Expanding Faster Delivery Network
Amid rising demand for quick commerce services, FirstCry scaled its faster delivery network to 13 cities from four. The company said the expansion of its in-house delivery ecosystem has resulted in growth in those cities and improved customer experience.
“Our goal is to continue expanding our faster delivery initiative month-on-month and add more cities to be able to cover half of our shipments by mid-next year,” Maheshwari said.
In its investor presentation, the company added that further improvements in the faster delivery network and scaling up of new initiatives will enable stronger GMV growth across both offline and online channels in H2 FY26.
During the Q1 FY26 earnings call, Maheshwari had noted that the company faced several headwinds during…
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